At risk limitation for S Corp

[Joel]

Taxpayers have been owners in a S corp for several years. Losses have been that they reached their "At-Risk Limitation" a few years ago. The losses have been recorded each year on form 6198. The corp finally went out of business and they received their final k-1s. My question is how to handle all the losses which now total $39,000. If it was a passive loss the 8582 would allow the losses, but with at-risk I don't know.

Any help or suggestions?

[kcjenkins]

Once the activity is disposed of, the suspended losses are freed up and can be taken when there is income to offset them.

[Joel]

KC

Do you mean non activity income or just income to the S Corp? Since the final K-1 was issued there will be no future S Corp income.